There has been an increasing pattern in real estate purchases in the past few years. Houses have been offering like hotcakes, so to speak, and numerous have declared that this real estate boom is far from being over. There are a few reasons that have been cited which give some insight into the existing real estate market and why real estate sales are not most likely to decrease for a long time to come.
Remember we have offices in Dundas, Dundas Valley, Carlingford, Oatlands, Rydalmere, Ermington, Camellia, Denistone West, North Parramatta, Rosehill and Telopea
Building Business Not Growing As Much As Real Estate Sales in Telopea
There are numerous reasons that the real estate market slows down. One such reason is because of an over-expansion of homes for sale. Although the house building business has been rather profitable, it still has a ways to go in order to overtake real estate sales. This is a good idea because there are not rather adequate houses to satisfy the existing need and that will keep the marketplace booming for a long time. So long as the supply does not swallow the need, the real estate market will continue to succeed.
Interest Rates Stay Affordable
While rates of interest have increased somewhat when compared to the past number of years they are still fairly low and make many individuals wish to purchase a house. These appealing rates assist keep the real estate market going because a lot of individuals need loans to buy homes and low-interest rates make the total purchase less expensive. So long as the rates of interest stay somewhat stable, prospective homebuyers will still be revealing fantastic interest in the purchase of a house simply because low-interest rates make the investment more budget friendly.
Length of the ARM Fixed Rate Portion Is Increasing
For those who have adjustable-rate mortgages (ARMs), they may have worried about the adjustable rate portion when their fixed rate portion was depleted. Just recently the fixed-rate portion of the ARM has been increasing with regard to the length of years in which it is active. This has led to stabilizing the real estate market and has likewise brought in individuals to buy a house by means of an ARM that has this new lengthier fixed-rate duration.
Flipping of Real Estate in TelopeaNot As Widespread As It May Seem
Some individuals have been worried that turning of real estate, which is the purchase and quick sale of the real estate thereafter, is something that might cause the real estate bubble to burst. Nevertheless, those who have expressed concern can rest simple knowing that the portion boost with regard to turning from 1998 to 2003 is just 1%. When viewing the total plan of things, a 1% boost within 5 years is not something that needs to cause excessive concern.
The real estate market has been doing rather well in the past few years and the above factors combine to make what some belief is a real estate bubble that makes sure to burst. Whether this real estate boom continues for a long period of time to come is something which remains to be seen. Nevertheless, the real estate market appears to be staying stable and while house costs might continue going up supply is not outweighing need and people keep purchasing. So, just the future will show when the real estate market starts slowing down.